GAIL (India) Limited , the country's largest natural gas company, has received a vote of confidence from Moody's Investors Service. The international credit rating agency has confirmed GAIL's Baa3 credit rating and maintained a stable outlook for the company.

Understanding the Rating

Moody's decision to affirm GAIL's Baa3 rating is significant for several reasons:

1. Credit Quality: The Baa3 rating is the lowest investment-grade rating in Moody's long-term corporate obligation rating scale. It indicates that GAIL's obligations are subject to moderate credit risk and are considered medium-grade.

2. Stable Outlook: The maintenance of a stable outlook suggests that Moody's does not anticipate significant changes in GAIL's creditworthiness in the near to medium term.

3. Unchanged Assessment: The confirmation of the rating indicates that Moody's view of GAIL's creditworthiness remains consistent with its previous evaluation.

Implications for GAIL

The affirmation of GAIL's credit rating carries several implications for the company:

• Financial Stability: It reflects Moody's confidence in GAIL's ability to meet its financial obligations.
• Investor Confidence: The stable rating may help maintain or potentially boost investor confidence in the company.
• Borrowing Costs: A stable investment-grade rating typically allows companies to access capital markets at favorable interest rates.

Market Context

While this news is positive for GAIL, it's important to note that credit ratings are just one factor that investors and stakeholders consider when evaluating a company. Other factors such as operational performance, market conditions, and industry trends also play crucial roles in determining a company's overall financial health and market position.

Investors and stakeholders are advised to consider this rating confirmation as part of a broader analysis of GAIL's financial position and market performance.

GAIL (India) Ltd , a major player in the Indian energy sector, has recently taken a significant step in support of Talcher Fertilizer Limited (TFL), a joint venture company established in 2015. The move involves the execution of a Sponsor Support Undertaking (SSU) as part of securing a substantial Rupee Term Loan Facility for TFL.

Key Details of the Transaction

Implications for GAIL

GAIL has clarified several important points regarding this transaction:

1. No Guarantor Status: GAIL emphasized that it is not the guarantor of the loan facility.
2. Financial Impact: The company stated that there are no financial implications for GAIL as a result of this undertaking.
3. Transaction Nature: The deal has been conducted at arm's length, ensuring fairness and transparency.

About Talcher Fertilizer Limited

TFL is a joint venture incorporated in 2015, bringing together four major entities:

• GAIL (India) Ltd
• Coal India Ltd
• Rashtriya Chemicals & Fertilizers Ltd
• Fertilizer Corporation of India Limited

The primary objective of this joint venture is to revive FCIL's fertilizer unit by establishing a coal gasification-based fertilizer plant in Talcher.

Regulatory Compliance

This disclosure by GAIL is in compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015. Specifically, it adheres to Regulation 30 [Clause 11 of Para B of Part A of Schedule III] of these regulations.

The execution of the Sponsor Support Undertaking by GAIL and other promoters of TFL marks a crucial step in securing the significant loan facility for TFL. While GAIL's involvement is substantial, the company has been clear about the nature of its commitment, emphasizing the absence of direct financial implications and its non-guarantor status in this arrangement.